Dear Editor,
We were interested to read the article in the current edition of the Algarve Resident concerning the attitude of the Ministry of Finances concerning the application of the non-habitual residency scheme in respect of pension income.
Indeed this has caught a few foreign advisers out particularly in Sweden as you mention in the article where Portugal was being cited as a potential “tax haven” for emigrating Swedes!
Here at Sovereign we always doubted whether the Finance Department would accept the law as it appeared to be written but we do have our own plan to revitalise the Algarve economy which you may care to publish in an effort to get Government approval!
Our Tax plan:
Any EU citizen already in receipt of a state or other pension from another EU territory may come and live in the Algarve, on their pension or any dividend income, totally tax free. Any other income, whether Portuguese sourced or not – the tax rate is 20%.
Conditions:
1. Must already own a residential property in Faro District area, or;
2. Must buy a residential property in Faro District area within 12 months of arrival or;
3. Must rent a residential property in Faro District area within 3 months of arrival paying a monthly rental of at least €300. No camper vans allowed!
4. No exemption from IMI;
5. Must have adequate health insurance;
6. Must have adequate life insurance to provide for any dependents on death.
Objectives:
1. To kick start the real estate and also perhaps the automobile sectors;
2. To increase business for local suppliers of domestic goods and similar
3. To benefit leisure providers, bars, restaurants etc
4. To increase revenue from VAT and any other direct taxes.
Nigel Martin Anteney-Hoare FCIS
Managing Director, Sovereign Group
